A legally binding document outlining the goods or services needed, their quantities, costs, and delivery conditions is called a purchase order, and it is sent by a buyer to a supplier. The PO serves as the catalyst for stock replenishment and the start of the procurement cycle in inventory management. Inventory is promptly restocked to satisfy demand without holding excess stock thanks to effective PO management. Purchase order automation and integration with inventory systems enhance accuracy, lower administrative costs, and facilitate just-in-time procedures that complement inventory optimization tactics.
